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Strategic Guidance to Build Your Business
Volume 3, Issue 4, March 2009

"The Business Builder" is brought to you by VSA, Inc. in collaboration with Rink Consulting. VSA, Inc., founded by Valerie Schlitt, builds and implements B2B prospecting programs for businesses and professional service firms. VSA has a team of professional telephone callers who open doors to new business opportunities for VSA clients. Linda Rink, president of Rink Consulting, specializes in B2B and consumer marketing and research. Both Wharton MBA graduates, Valerie and Linda often team together to help clients identify and reach new customers. In this newsletter, they share some of their business development insights.

Cold Calling: How to make long-term programs work!
by Valerie Schlitt, President of VSA, Inc.
Valerie Schlitt photo

Some companies implement short term cold calling initiatives - and on occasion there are valid reasons for such small campaigns.

For most companies these brief one-time cold-calling efforts are a waste of investment and do not deliver much value. The best cold calling programs span months if not years and rely on a very effective sales process to close leads.

Here are some recommendations, based on our long term involvement in cold calling:

1. Pace your cold calling program

Make cold calls consistently, month in and month out. We recommend 5 - 10 cold calling hours a week, minimum.

  • At this pace, you'll actually reach only about 20-40 decision makers, or fewer.
  • A small fraction will result in qualified leads.
  • You'll begin to fill your pipeline at a steady pace.
  • The timing of leads is unpredictable in any given week or month, but over the long haul you will generate a consistent level of new business.
2. Create a proactive, sales-oriented follow-up process

Use true sales skills to follow-up on leads. This is not a job for an order taker. This is not a job for a team that takes inbound leads from the Internet. This is a job for a real sales person.

Here's what you need:
  • A pro-active follow-up process that utilizes the phone, email and potentially mail and fax.
  • Ability to qualify the lead further, identifying his or her problem and how you can help solve it.
  • Real sales skills that show why the prospective client should do business with you.
  • A sense of urgency.
Remember, the prospect did not call you first. This prospect was sitting by a phone when you called, and something you said piqued interest.

You need to continue to create interest and a sense of urgency throughout the sales process.

3. Set realistic expectations

Cold calling is a proven way to generate sales, and one of the oldest time-worn methods there is.

However:
  • Cold Calling leads do not convert into business as quickly as "orders" from the Internet, unless there is an urgent need. They may take months or longer to close. Do not give up.
  • They do not convert in consistent timeframes or with consistent effort. Some may close quickly with little additional effort. Most will take active follow-up using true sales skills. The end result is still new business.
  • Leads take a long time to identify. Remember: just because your product/service is unique compare to your competitors, does not mean that everyone has an immediate need, or is waiting for your phone call.
  • They may not be uniformly qualified. When a prospect indicates an interest over the phone, they are reacting positively to an unexpected offer. Over time, some may realize this is a true need; others will decide your service is not for them.
  • In any given month your volume of leads will be higher or lower than expected. So, don't expect the high months to continue forever. And likewise, don't give up in the slow months.
With the right set of expectations you can build a cold calling program that produces ongoing business.

At the end of the day, it's all about the right pace, sales plan and expectations! Cold calling is a valuable sales and prospecting activity. It is not magic. It is a lot of hard work both to make the calls and to close the sales.

But it is proven and it works!

Got a cold calling question?
Want to know if cold calling could work for you?
Get free cold calling advice.
Call 856-240-8100 before April 1.
Ask for Valerie.
Set time for a 15 minute telephone debrief.

You're the Best! Now Prove It!
by Linda Rink, President of RINK Consulting


These days, most of us have to work harder than ever to gain new clients and sell more products or services. But how do we convince prospects to choose us? It's natural to start boasting, "Because we're the best!" Yeah, right -- says who?

Recently I heard Lisa Dennis, president of Boston- based Knowledgence Associates, give a presentation to the Association for Accounting Marketing about crafting a compelling value proposition. One point that she made resonated with me: in their attempt to gain a competitive edge, many companies make either generic claims such as "we're one of the best in our field," or unsubstantiated hyperbole, "we're number one." As a researcher who frequently does competitive analysis, I can attest to how common this is, especially on company websites.

Claims such as "best" or "number one" are used so often - and by competitors in the same field - that they have lost meaning. Is it any wonder that prospective customers are unimpressed, or worse, turned off?

You can win back your credibility by substantiating your claims if you do it believably and honestly. How you set yourself apart from your competition must be, first, meaningful (i.e., an important criteria for prospects) and second, believable (you must have proof).

Here are 5 ways to prove your "we're the best!" claim:

1) Outside experts
Lucky you if there is an objective authority in your field which regularly ranks companies and you are ranked # 1 this year! The more widely-accepted this authority is - by both your peers and your customers - the better.

Tip: Even if your prospects have never heard of this ranking, if the rating criteria is important and relevant to them, play it up. If it's not important to them, by all means include it on your website and literature, but don't give it top billing.

2) Special credentials
If you or your company have a unique expertise or certification that sets you apart, this certainly can give credence to your claims, as long as prospects see it as relevant to their needs.

Lacking an industry-accepted authority, there is nothing wrong with doing your own survey. Whom to poll depends on the criteria you are looking at:

3) A random sample of target customers
This is most suitable for assessing company image or awareness versus your competitors. In most cases, you will want a fairly large sample to give weight to the results.

4) Your current customers
Surveying your customers is ideal for customer service, product or service quality assessments. You can also obtain valuable testimonials this way.

5) Your peers
Similar to outside expert opinion, your peers can judge you on special technical competencies or other criteria that are valued within your industry.

Tips:

  • In most cases, having an objective third party conduct the research brings much more credibility to the results. Depending on the situation, you may or may not wish to have your company identified as the one sponsoring the research.
  • Quantitative substantiation is almost always more impressive than qualitative (i.e., being ranked # 1 in customer service by a sample of 500 is more impressive than by a sample of 10).
  • There are exceptions, however. Testimonials by a few very well-known customers can carry a lot of weight. So can endorsements by respected experts. Actual quotations, directly attributed to an individual (real name, not just a title), are essential in these cases.
  • It goes without saying that all your communications should include information on how the documentation was obtained.
Just as you evaluate the credentials of vendors and suppliers before you buy, so do your prospective customers. Do your claims stand up to scrutiny?









RINK Consulting
1420 Locust Street, Suite 31N
Philadelphia, PA 19102
215-546-5863
lrink@lindarink.com
www.lindarink.com

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